Keen to offer a wider string of services related to virtual assets including crypto derivatives products, and custodial and trading services to fitly qualified retail and institutional investors in Dubai, Binance, the global blockchain services provider, has received the Minimal Viable Product (MVP) license from Dubai’s Virtual Asset Regulatory Authority (VARA), following the issuance of its provisional license in March 2022.
The MVP license “means that Binance can offer an approved range of virtual asset-related services to suitably qualified retail and institutional investors in Dubai within its internationally benchmarked legislative framework for virtual asset service providers (VASPs).”
Committed to strong investor and market protection principles, Binance will “cater to a clientele approved by VARA who can now benefit from the local banking channels unlocked by this first-of-its-kind regulatory license.”
Users will benefit from increased levels of consumer protection by trading on a regulated platform under the supervision of VARA in Dubai.
Why transition to an MVP Licence from a Provisional Licence?
The move will help Binance expand its global footprint specifically within the United Arab Emirates, a hub spot for the budding space where very few crypto-associated firms have pursued regulatory approval such as Blockchain.com, OKX, and FTX, to name some. This license is a major milestone that follows a host of registrations for Binance’s local entities in the MENA region and across Europe in Italy, France, and Spain. Further, it attests to Binance’s aspiration to be a regulation-led platform with solid compliance and security controls that have consumer protection and market integrity at its core. With this new license, Binance is able to open a client money account with a domestic bank and provide qualified customers a wide array of services including Transfer of virtual assets, virtual asset exchange services, custody & management of virtual assets, conversion between virtual assets and fiat currencies, virtual assets payments & remittance services, virtual token offering & trading services.
Views and insights of the faces behind this project
Helal Saeed Almarri, Chairman of VARA, said, “We are pleased to have Binance licensed to operate within the VARA MVP Programme. The VARA regime aims to strike an effective balance between value creation and risk mitigation, enabling open market innovation while assuring protection for the economically vulnerable. The MVP Phase is designed for select global players across the value chain, that are committed to responsible industry participation and VARA looks forward to Binance being an active contributor, reinforcing Dubai’s commitment towards creating a next-gen secure ecosystem for this future economy.”
Changpeng Zhao (CZ), founder and CEO of Binance, commented: “At Binance we welcome regulations that are globally consistent, enable responsible innovation, protect users, and give them a choice. VARA’s unique operating model is setting a benchmark for the global industry. This most recent registration is an acknowledgment of our compliance and safety processes in the new regulatory framework. We strongly believe there is a significant opportunity to work with our industry peers to develop consistent implementation standards worldwide as we have been doing in Dubai.”
Alexander Chehade, Binance Dubai General Manager, noted: “Our registration in Dubai is a reflection of the country’s progressive stance on blockchain technology and its willingness to embrace this sector through collaboration.” “We look forward to a continued partnership as we build upon our team and operations in Dubai to roll out additional services, including local banking capabilities and enhanced products.”
